The rising cost of software compliance: new study reveals all

The rising cost of software compliance: new study reveals all

The report sheds light on escalating costs, operational disruptions and the growing complexity of compliance management.

Published on 29th January 2025

A recent study conducted by Unisphere Research, and sponsored by LicenseFortress, reveals that software audits are becoming increasingly frequent and financially burdensome. The 2025 Survey on Enterprise Software Licensing and Audit Trends sheds light on escalating costs, operational disruptions, and the growing complexity of compliance management.

The study offers a detailed examination of how these pressures are reshaping priorities across IT and executive leadership. Companies are allocating more resources than ever before to mitigate risks, manage audits, and avoid potentially catastrophic financial consequences.

Key Findings: A Stark Comparison

“Software audits have evolved into a high-stakes challenge for organizations, and the data clearly shows this trend is accelerating,” said Dean Bolton, Chief Architect & Co-Founder, LicenseFortress. “What was once a periodic inconvenience is now a frequent and costly risk that demands immediate attention.”

Resource Allocation and Human Costs

Software audits require not only financial resources but also substantial time and manpower, disrupting normal business operations. Organizations are increasingly diverting their workforce, from technical staff to top executives, to handle audit demands. The survey reveals just how significant the resource drain has become:

The Growing Role of Third-Party Services

Organizations are increasingly turning to third-party audit defense services to alleviate the burden of compliance. These external experts not only reduce the financial impact of audits but also help streamline the overall process. The survey shows a marked shift in attitudes toward leveraging specialized expertise:

“The survey highlights how quickly the landscape is evolving,” said Dr. Michael Corey, COO & Co-Founder of LicenseFortress. “When we first surveyed companies two years ago, most were managing compliance entirely in-house. Now, there’s a clear shift toward adopting specialized expertise, driven by the growing realization of how complex software licensing has become.”

Prediction: The future is SAM Managed Services

The findings highlight a complex and demanding environment for organizations, even as they increasingly turn to industry expertise. Many continue to face steep compliance fees and substantial resource strain during audits, with C-suite involvement reported quarter of cases. This brings forward a critical concern: Do organizations fully grasp the indirect costs associated with audits? Addressing these challenges requires a shift toward smarter, more proactive software licensing strategies.

Using a SAM Managed Service with continuous monitoring, organizations can proactively mitigate risks, alleviate the burden on internal teams, ensure compliance, and uncover cost-saving opportunities. Real-time insights enable companies to address potential issues before they escalate, maintain better control over licensing, and optimize resource allocation for long-term efficiency.

Source

Image Credit

Jittawit Tachakanjanapong via Vecteezy

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